Check out our March 2024 SF election guide. A nonpartisan analysis of policy and voting heading into San Francisco's March 5, 2024 election. Voters will consider the following proposals in their election:
Proposition C provides owners of properties converted from commercial to residential use with a one-time transfer tax exemption on the first sale after the conversion, as long as the change of use was approved before January 1st. This is a change to San Francisco's tax system that allows for 2030.
San Francisco currently requires a 6% transfer tax on real estate sold for $25 million or more. The proposed exemption could apply to conversion properties of up to 5 million square feet. The measure would require voters to approve increases, but would allow the Board of Supervisors to amend, reduce, suspend or eliminate transfer taxes without voter approval. The city can also increase the amount of commercial development allowed in a given year by adding in the square footage of land that has been converted or demolished.
The measure could provide a transfer tax exemption to a portion of a building that is converted from commercial to residential use, provided the other portion of the property continues to carry out business activities.
The opportunity to take advantage of Proposition C's transfer tax exemption expires at the end of 2054.
The administration estimates that the city could lose between $34 million and $150 million over 30 years if it grants transfer tax exemptions for 5 million square feet converted from commercial to residential use. ing. By removing space occupied by businesses, the city could lose additional revenue currently generated by commercial operations, such as gross receipts taxes and other taxes that do not apply to residential properties. But the city could see an increase in property taxes because residential properties often have higher assessed values than commercial properties of the same size.
The calculations are complex and based on assumptions about what will happen. “When an office building is economically converted into a residential building due to exemption from transfer tax.”
Although it is possible, the building would eventually be occupied by a future office tenant.
“This exemption will most likely result in a net negative revenue impact for the City,” Comptroller Ben Rosenfield said in his analysis of Proposition C.
Mayor London Breed filed this measure for inclusion on the ballot. The plan is also supported by Supervisors Matt Dorsey, Joel Engardio, Rafael Mandelman and Katherine Stefani, who all signed a formal rebuttal to the statement of opposition.
“Downtown San Francisco is undergoing a period of change, and the future of what downtown will become: a vibrant 24-hour district filled with residents, workers, arts and culture, and successful people. “There is a tremendous opportunity to bring investment and excitement to “small and medium-sized businesses,” Breed wrote in a public statement supporting Prop. C.
More than a dozen business groups and organizations, as well as nearly 50 individuals, signed on to a paid debate panel filed in support of the bill. They include state Sen. Scott Wiener and groups such as the Housing Action Coalition, GrowSF, and San Francisco Bay Area Planning and Urban Research. SF inbee.
Proposition C is opposed by groups including the Council of Community Housing Organizations, San Francisco Democratic County Central Committee, Affordable Housing Alliance, San Francisco Tenants Union, Seniors and Disabilities Action, Harvey Milk LGBTQ Democratic Club, and Small Business Forward. are doing. In a statement opposing Prop. C, they called it a “deceptive plan that takes power away from voters and allows politicians in City Hall to give corporate tax breaks to billionaires and mega-real estate owners.” “A ballot measure,” he said.
In their rebuttal, they pointed out that current law provides a tax exemption for converting office buildings into affordable housing, and the measure would extend that benefit to luxury housing developers.
This measure A 50% or more vote is required for it to pass.
A “yes” vote supports a change in San Francisco's transfer tax policy that grants owners of properties converted from commercial to residential use a one-time transfer tax exemption on the first sale after the conversion. means.
A “no” vote means you do not want the proposed changes to the city’s transfer tax policy.
